Fiscal Year 2016 Budget Outlook - York County School...
Transcript of Fiscal Year 2016 Budget Outlook - York County School...
Fiscal Year 2016 Budget Outlook
December 8, 2014
Recap of FY10, 11, 12 and 13 Budgets
• State revenue down $9.2m (14.2%) or $11.7m (18%) if including effect of VRS increased costs
• Total operating budget reduced $4m (3.2%) or $6.5m (5.2%) if including effect of VRS increased costs
• Cut 124 permanent positions (not temporary positions) by attrition and layoffs
• Provided no raises, no step increases and no position re-grades
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Recap of FY14 Budget • State revenue increased $0.3m or 0.6% • County operating contribution increased $1.2m or 2.4% • Total operating budget increased by $1.2m or 1% • Health insurance rates increased 17.2% or $1.9m • Provided 2.0% or $1.9m in raises (4.2% if VRS shift to
employees is included) and no step increases • Cut 19 permanent positions (not temporary positions) by
attrition and other reductions
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Recap of FY15 Budget
• State revenue increased $2.9m or 5.2%
• State mandated VRS rate increase $1.8m
• County operating contribution increased $.88m or 1.76%
• Total operating budget increased by $4.0m or 3.2%
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Recap of FY15 Budget (continued)
• Health ins. rates decreased 3% (saved $.318m) • Provided 3.1% or $2.5m in raises (4.1% if VRS shift to
employees is included). Includes 1 step for all eligible, scale adjustment, and new pay plan for teachers
• Cut 16 permanent positions (not temporary positions) by
attrition and other reductions
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Operating Budget Comparisons (Does Not Include Federal Stimulus Allocations)
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$104,413,915
$115,102,150 $116,630,009
$124,462,107
$121,659,527
$115,027,267
$116,797,819
$120,485,299
$122,547,234
$126,532,845
103,000,000104,500,000106,000,000107,500,000109,000,000110,500,000112,000,000113,500,000115,000,000116,500,000118,000,000119,500,000121,000,000122,500,000124,000,000125,500,000127,000,000
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Am
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$104,413,915
$115,102,150
$116,630,009
$124,462,107
$121,659,527
$115,027,267
$116,797,819
$120,485,299
$122,547,234
$126,532,845
$123,602,107
$121,032,747
$111,290,937
$115,150,439
$113,856,872
$120,347,732
$124,590,927
$106,950,590
$102,000,000
$107,000,000
$112,000,000
$117,000,000
$122,000,000
$127,000,000
$132,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Actual unadjusted operating budget
Operating budget adjusted for increases in VRS and health insurance
Comparison of FY09 base year to FY15 after adjusting FY15 for the cumulative impact of VRS and health insurance increases during the same period. Total adjustment is$17,640,337. 7
Operating Budget Comparisons (Does Not Include Federal Stimulus Allocations)
YCSD State Operating Fund Revenue
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40,000,000
42,500,000
45,000,000
47,500,000
50,000,000
52,500,000
55,000,000
57,500,000
60,000,000
62,500,000
65,000,000
67,500,000
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FY16 ADM Projection
• FY15 Budgeted ADM 12,420*
• FY16 Projected ADM 12,670*
• Projected Increase 250
*County Planning Department Estimates
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State Revenue - Backdrop
• State revenue growth for FY15 and FY16 is short of
state projections
• State budget reductions are planned for FY16
• FY16 is the 2nd year of the biennium. Short
session (45 days) for General Assembly
• Possible K-12 education funding will be reduced
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State Revenue – Backdrop (cont’d)
• Changes in SOQ’s (?) • No re-benchmarking of SOQ’s • No VRS rate increases for FY16
• Must shift another 1% of VRS to employee in FY16
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State Revenue – Backdrop (cont’d)
• The Local Composite Index will not change:
FY15 .4026
FY16 .4026
(LCI is the measure of local ability to pay)
(In FY14 increased from .3727 to .4049. Reduced State funding by over $2.2 million.)
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FY16 local composite index for Hampton Roads comparator school divisions Williamsburg 0.8000 James City County 0.5632 Virginia Beach 0.4034 York 0.4026 Chesapeake 0.3610 Suffolk 0.3490 Norfolk 0.3123 Hampton 0.2978 Newport News 0.2908 Portsmouth 0.2678 13
State Revenue – Key Dates
• Governor releases his proposed FY16 budget on
December 17, 2014
• General Assembly convenes on January 14, 2015
• General Assembly scheduled to close session on or about
February 27, 2015
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Federal Impact Aid/DoD for FY16
• FY15 – currently under a Continuing Resolution that ends December 11, 2014
• Last year to count students displaced by renovations at Bethel Manor
• FY16 impact aid preliminary estimate is $9.15 million or $300k less than FY15 budget
• Projecting an increase of $71.45k in heavily impacted funds from DoD
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Federal Revenue for FY16 (cont’d)
• Sequestration may return in FY16
• Under sequestration other federal grants such as Title I would be cut
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FY16 County Funding
• Unknown at this time
• There is no funding formula for the County
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State (possible range of 2% increase to 3% reduction) $1.3m to ($1.9m) Federal Impact Aid $(300k) Federal (DoD Heavily Impacted) $71.45k County ? --------------- One possibility for range in federal and state revenue changes $1.071m to (2.12m) Based on information available.
FY16 Revenue Outlook
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FY16 Employee Compensation
VRS Contribution (each 1% shift to EE = $150,000) ER Cost if 1% VRS were shifted to EE $150,000 Approx. cost to hold EE harmless (.1%) $76,000 VRS Professional and Non-Professional Groups - No rate increases
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FY16 Employee Compensation (cont’d)
Health Insurance (each 1% for employer = $106,000)
3.6% reduction in rates $ (381,600)
Cost of one step for all eligible staff $1,250,000
Market Adjustment (each 1% for all EE’s) $760,000
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EXAMPLES:
• Staff compensation
• Technology, replacement buses, vehicle parts
• Special Education teachers
• Teachers, Para-educators, materials for additional enrollment
• Textbooks, educational materials
School Division New Funding Requirements
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Key Dates in Jan / Feb (as of Dec. 8, 2014)
• January 5, 2015 School Board Work Session on FY15E and FY16 Operating Budget • January 26, 2015 Public Forum on FY16
Operating Budget • February 3, 2015 Joint work session with
Board of Supervisors 22
Fiscal Year 2016 Budget Outlook
December 3, 2014